According to the Zhitong Finance App, Chipboard (688630.SH) announced that in order to enhance the capital strength of its wholly-owned subsidiary CFM Global Limited (“Hong Kong Subsidiary”), optimize its financial structure, ensure the steady operation of its offshore innovation and operation platform functions, and seize the global market expansion window to achieve leapfrog development, the company plans to raise capital for its Hong Kong subsidiary by up to about HK$97 million. The current shareholder of the Hong Kong subsidiary is the company and holds 100% of its shares. This capital increase is for the company to unilaterally subscribe for additional shares in cash. It does not involve the same proportion of other shareholders, nor does it cause changes in the rights of other shareholders. After the capital increase was completed, the number of shares issued by the Hong Kong subsidiary increased from 3 million shares to no more than 100 million shares. After the capital increase, the total investment amount of the company in the Hong Kong subsidiary will not exceed 85 million yuan. The final share capital for the capital increase will be determined according to the exchange rate applicable at that time and in conjunction with the relevant ODI approval amount.
The capital increase is mainly to ensure the smooth implementation of the company's offshore innovation and operation hub construction, implement the payment usage arrangements disclosed in the prospectus, enhance the Hong Kong subsidiary's project acceptance and capital operation capabilities in overseas sales and service network construction, cutting-edge research and development, etc., meet the capital requirements during the implementation of fund-raising projects, ensure the orderly development of related businesses, and ensure the smooth implementation of the company's overseas business.